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Overtime Calculator
Work out your overtime rate and pay for the week and the year, including double time and the federal overtime deduction.
Overtime rules in brief
The federal Fair Labor Standards Act (FLSA) requires overtime of at least 1.5 times your regular rate for every hour over 40 in a workweek, for non-exempt employees. Salaried workers can be exempt if they earn above the salary threshold and do qualifying executive, administrative or professional work. Some states, such as California, also require daily overtime and double time.
Example: $25 an hour, 50 hours
40 regular hours × $25 = $1,000. 10 overtime hours × $37.50 = $375. Gross pay for the week is $1,375. If you work this schedule every week, overtime adds $19,500 a year.
The no-tax-on-overtime deduction (2025–2028)
For tax years 2025 through 2028, eligible workers can deduct the premium part of FLSA overtime, the extra half on top of the regular rate, from federal taxable income. In the example that is $12.50 × 10 hours = $125 a week, or $6,500 a year. The deduction is capped at $12,500 ($25,000 for joint filers) and phases out for incomes above $150,000 ($300,000 joint). Social Security, Medicare and most state taxes still apply. It is claimed when you file, so your paycheck withholding may not reflect it.
See what overtime does to your actual paycheck with the paycheck calculator, which has an overtime box for hourly workers.
Frequently asked questions
How is overtime calculated?
Under federal law, non-exempt employees get at least 1.5 times their regular rate for hours over 40 in a workweek. At $25 an hour, overtime is $37.50 an hour, so 10 overtime hours add $375.
Is overtime taxed more?
No. It is taxed at the same rates as other pay, though a bigger check can mean more is withheld that period. For 2025 through 2028, a federal deduction lets eligible workers deduct the overtime premium (the extra half) from taxable income, up to $12,500 a year ($25,000 married filing jointly).
Do any states require daily overtime?
Yes. California pays 1.5 times after 8 hours in a day and double time after 12, and Alaska, Nevada and Colorado have daily overtime rules too. Use the double-time box for those hours.